It’s that time of year again. When I drive past my local high school, I see athletes on the practice field getting ready for the upcoming season. I see young men and women cross-country runners jogging down the sidewalks. And I hear the pleasant sound of the marching band preparing for halftime performances.
Yes, school and all its attendant extracurricular activities are back in session. It seems like summers are short, but I’m fairly confident that plenty of parents are happy to get back into a manageable routine.
And I’m personally pleased that the state of Michigan has now made a half credit personal finance class mandatory in order for students to graduate. However, I am a bit surprised that the courses are being taught in middle school. It seems to me that it would make more sense if they were offered to high school students. It would be much closer to the time when young adults leave home and are making more of their own financial decisions.
As for adults, I think it’s critical that voters have a good grasp of pocketbook issues, especially during this election cycle. I’ve already seen far too many political ads. And sadly, not one ad or one politician has mentioned that our national debt is now in excess of $35 trillion. To say it’s mind-boggling is an understatement.
Let me explain it in a way that’s easier to understand. If that debt were divided among the populace, you and every other person in the country would be on the hook for more than $104,000.
Not to pick on student loans, but they aren’t really forgiven. Student debt becomes national debt. And it’s you, the taxpayers who pay it. Very, very slowly.
And it’s not just student loan debt. Every year Uncle Sam has been adding to the overall debt by spending far more than tax revenues bring in. During the course of the political season, I hope there will be discussions that address this serious issue.
Many families and individuals will be facing difficult financial decisions in the years ahead. I’m not sure keeping debt under control is going to be easy for them. In fact, it probably won’t be.
Don’t expect to get much help from listening to 30-second political sound bites. Is Uncle Sam going to spend less? Raise taxes? Does it really matter what is said before the election?
There’s a financial storm cloud on the horizon that few are acknowledging. In order to face that storm we need to understand the basics of money and finances. Everyone needs to fully grasp the realities and subtleties of debt and interest and the basics of budgeting. Equally important is an awareness of the ramifications of a tax system that’s in desperate need of reform.
Even though the nation and many citizens are drowning in debt, I remain optimistic. I’m confident that money management skills can be taught and that people can develop good financial habits and learn to live within their means.
As the seasons change and we get closer to the elections let’s be hopeful. Let’s hope that those elected are good stewards of our nation’s finances. Wouldn’t it be nice if our leaders set a good example for the rest of us?
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